Technavio have published a report which assesses the state of the global lottery market and makes predictions for the next four years during which time it estimates it will grow at a CAGR (compound annual growth rate) of 9%.

Ujjwal Doshi, a Lead Analyst at Technavio for gaming research, commented: “The regulations on lottery markets across the world are evolving with many countries legalizing different forms of lottery. The change in regulations, especially in countries like the US that have a high potential for growth, will drive the growth of the market during the forecast period.”

The report breaks down the global lottery market into three main categories. These are terminal based games, scratch off games and sports lotteries. The scratch off lottery market is predicted to grow at an CAGR of 12% whilst the terminal based market should grow by almost 10% and sports lotteries by 4%. The growth and continuing popularity of the scratch off market was logically attributed to the nature of them which offers an instant win at a low cost. As of 2016 the report stated that Betsson and Bet365 are the key vendors in this area.

Terminal based lotteries, which include the Lotto, EuroMillions, Mega Jackpot, EuroJackpot and Powerball, account for the largest segment of the overall market in 2016 at just over 55%. Between 2011 and 2016, records for jackpots were broken in Germany, the UK and the US and Technavio made the logical conclusion that a greater potential payout, and the anticipation involved in these sorts of lotteries, has and will lead to more taking part.

Online is naturally an area that is set to grow, and Doshi noted: “The growing demand for the online lotteries is also helping the market to grow. Online lottery gaming vendors have started using the latest innovations to attract more customers.”

Sports lotteries are extremely popular with football and racing the main sports; and Technavio assessed the major vendors involved as Camelot, the China Welfare Lottery, Francaise des Jeux, International Game Technology, Hong Kong Jockey Club, INTRALOT and Scientific Games.

Totally Gaming says: The global lottery market is as strong as ever and growing at a very impressive rate according to Technavio. A predicted CAGR of 9% over four years is high, and the fact that the fastest growing looks set to be scratch off games warrants some further investigation into this area.